Russia's Gazprom Rediscovers It Needs Ukraine

With the Nord Stream pipeline down for maintenance in the Baltic Sea, Russia's only real alternative into Europe's lucrative gas market is via Ukraine.

By Kenneth Rapoza, Contributor to Forbes [Opinions expressed by Forbes Contributors are their own.]

Gazprom has rediscovered it needs Ukraine.

With the Nord Stream pipeline down for maintenance in the Baltic Sea, Russia's only real alternative into Europe's lucrative gas market is via Ukraine. Russia's biggest gas exporter needs its old partner Naftogaz, at least until it finishes building the Nord Stream II line right beside the existing one that connects north Russia to Germany.

Naftogaz confirmed Monday that the Russians were indeed back (and not to take over vital parts of Ukrainian real estate, either).

Gazprom submitted an increased order of 315 million cubic meters (mcm) for gas to be shipped through Ukrainian pipelines into Europe over the weekend. The daily order for transmission of Russian gas through Ukraine has increased by 47 mcm over the past week alone, throwing Ukraine a much-needed cash infusion from Russia. For its part, Naftogaz said it was ready to "carry out the increased order in full", even though the order size is not stipulated by the existing contract between Naftogaz and Gazprom, the company said in a press release today.